COLUMBUS, Ohio--(BUSINESS WIRE)--The increasing costs of school supplies and extracurricular activities
for students in grades K-12 will dramatically outpace broader consumer
price index (CPI) inflation this year, according to Huntington Bank’s
eighth annual Backpack Index (NASDAQ: HBAN; www.huntington.com).
Relative to 2012, costs will grow an average of 7.3% for K-12 school
supplies compared to 1.39% as reported by the Bureau of Labor
Statistics’ CPI during the same time period. For the many high school
students that will add a mid-priced $300 tablet computer to their back
to school list, the Index increases 36%.

“We also recommend
that parents use the Index to teach their children how to budget, save
and comparison shop. These financial education tips will help prepare
them for college and give them a strong foundation for making wise
decisions about money throughout their lives.”

In 2013 parents are expected to pay:

$577 for elementary school students, a 5.3% increase compared to 2012

$763 for middle school students, a 5.3% increase compared to 2012

$1,223 for high school students, a 9.5% increase compared to 2012

As with most years, the Index prices backpacks from Big Lots. It also
includes traditional school supplies such as paper, pencils and erasers.
And it lists the price of renting musical instruments as well as playing
sports. No one particular item spiked in price this year. Small
increases across the board account for the rising costs.

Since the Backpack Index was first introduced, costs have increased 22%
for elementary school students, 43% for middle school students and 23%
for high school students. The most dramatic jump occurred in 2011 when
pay-for-play fees were either imposed or hiked.

“Huntington launched the Backpack Index in 2007 to help families plan
their finances for the school year,” said George Mokrzan, director of
economics for Huntington’s wealth management group. “We also recommend
that parents use the Index to teach their children how to budget, save
and comparison shop. These financial education tips will help prepare
them for college and give them a strong foundation for making wise
decisions about money throughout their lives.”

Each year the Index factors in new technology that becomes prevalent for
students, such as flash drives a few years ago. The addition of the
tablet and its cost would constitute the largest technology expenditure
to date. While many schools are providing tablet computers to students,
increasing numbers of parents also are buying the devices for their
middle and high school students.

Twenty-three percent of teens have a tablet computer, a level comparable
to the general adult population, according to a Pew Research Center
report issued March 13, 2013. The Pew report also indicated that 78% of
teens have a cell phone, and almost half (47%) of them own smartphones.
That translates into 37% of all teens who have smartphones, up from just
23% in 2011.

Pew’s findings are based on a nationally representative phone survey of
802 parents and their 802 teens ages 12-17. It was conducted between
July 26 and September 30, 2012.

Huntington Bank’s Back-To-School Shopping Guide

Assess: Take an inventory of the supplies
you already have.

Shop around: Go online and compare prices
and decide who offers the best deals.

Involve the kids: Help your child create
a budget and stick to it.

Source creatively: Talk to neighbors,
friends and other parents to see if they have an instrument or sports
equipment their children are no longer using.

Research rules & needs: Before buying
your child a tablet to use at school, ask your school district about
its policies on what is known as BYOD–Bring Your Own Device

Huntington Backpack Index Methodology

Each year Huntington obtains classroom-supply lists from a cross-section
of schools throughout the six states it serves and compiles a
representative list of required supplies and fees. Costs are determined
by selecting moderately priced items at online retailers such as
Staples. Value-cost backpacks are priced through Big Lots.

About Huntington

Huntington Bancshares Incorporated is a $56 billion regional bank
holding company headquartered in Columbus, Ohio. The Huntington National
Bank, founded in 1866, provides full-service commercial, small business,
and consumer banking services; mortgage banking services; treasury
management and foreign exchange services; equipment leasing; wealth and
investment management services; trust services; brokerage services;
customized insurance brokerage and service programs; and other financial
products and services. The principal markets for these services are
Huntington’s six-state banking franchise: Ohio, Michigan, Pennsylvania,
Indiana, West Virginia, and Kentucky. The primary distribution channels
include a banking network of more than 725 traditional branches and
convenience branches located in grocery stores and retirement centers,
and through an array of alternative distribution channels including
internet and mobile banking, telephone banking, and more than 1,400
ATMs. Through automotive dealership relationships within its six-state
banking franchise area and selected other Midwest and New England
states, Huntington also provides commercial banking services to the
automotive dealers and retail automobile financing for dealer customers.

The Huntington National Bank, Member FDIC. The logo mark and
Huntington® are federally registered service
marks of Huntington Bancshares Incorporated.

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